Please organize yourselves and collaborate to create a midterm study guide for the following key terms:
Chapter 1:
1. Why study mgt. history? study the past to illuminate the present “History may not repeat itself, but it rhymes”.-Mark Twain
2. Cultural framework 3facets, social political, technological
3. Social facet relationship of people to other people
4. Political facet relationship of the individual to the state
5. Technological facet related to the art and applied science of making tools and equipment
6. Brownoski quote “We are joined in families, the families are joined in kinship groups, the kinship groups in clans, the clans in tribes, and the tribes in nations. This is the most primitive revelation of a hierarchy of organization, layer upon layer that links the present to the past of man’s existence.”
7. George Washington quote “Knowledge is in every country the surest basis of public happiness”
8. Cultural environment Figure 1-11the state of nature: general scarcity of resources and hostility in nature gives rise to economic, social, and political needs of people. To satisfy need, people form economic, social, and political organizations. State of the art technology influences how organizations engage in Management. The management of organizations facilitates satisfaction of people’s needs.
9. Social values cultural standards of conduct
10. Guilds trade unions
Chapter 2:
1. Hammurabi Code of 282 laws
2. General Sun Tzu - marshaling the army into subdivisions, establishing gradations of rank amoung officers, using gongs, flags, and signal fires for communication, and planning. “This is the art of offensive strategy: when our forces are ten to the enemy’s one, to surround him; when five to one, to attack him; if double his strength, to divide him, if equally matched, engage him, if weaker numerically, be capable of withdrawing, if quite unequal in every way, be capable of eluding him”.
3. Confucius advocated that offices should go to individuals of proven merit and ability – led to performance appraisals
4. Chanakya Kautilya – humans “are naturally fickle-minded, and like horses at work, exhibit constant change in their temper. “It is impossible for a government servant not to eat up, at least, a bit of the King’s revenue.” Desired traits of administrators “of high ancestry…blessed with wisdom…eloquent..intelligent, enthusiastic…sociable”. Job descriptions.
5. Egyptian examples - developed extensive irrigation projects, the pyramids
6. Hebrew examples Joseph - viziers (supervisors)
7. Greek examples – Aristotle + Plato - Aristotle - father of scientific method - division of labor, specialization
8. Will Durant quote – (stoics vs. epicureans) "a nation is born stoic, and dies epicurean".
9. Roman examples – Rule of 10 - established units to perform certain tasks as well as a hierarchy of authority to ensure performance
10. Plato and Aristotle
11. Feudalism - ties people to the land, fixed rigid class distinctions, established an age of landed aristocracy that was to endure to the Industrial Revolution, forced education to a standstill, made poverty and ignorance the hallmark of the masses, and completely stifled human progress until the Age of Reformation.
12. Guilds - One of two from of industrial organization before the revolution, it consisted of either merchants guilds (buy and sell goods) or crafts guilds (create goods)
13. Domestic system - The other industrial organization besides guilds, it used contracts with people who worked in their own homes, making completion unpredictable.
14. Protestant ethic - To always work hard and through that you will be rewarded in the afterlife.
15. The Weberian thesis - That Protestantism created capitalism.
16. Calvinism - The belief that salvation required one to live a life of good work.
17. Liberty ethic - The political system conducive to individual's need for achievement and their rewards for worldly efforts.
18. Market ethic - The idea of removing governments control over how the business should operate and allowed them to engage in competition.
19. Adam Smith - The Wealth of Nations - influential in with letting people own business and allowing the economy to take care of itself, without regulated price.
20. Machiavelli - Wrote a book about how to rule successfully as a a ruler or aspiring ruler.
21. John Locke - Wrote about the idea of how one person should be leader, but a legislative.
22. Thomas Hobbes - Believed in a strong central leadership, that individuals needed to be ruled.
Chapter 3:
1. Steam engine - one of those big noisy thingys...oh wait, I bet you would rather know that the development of the steam engine was the heart of the industrial revolution, providing more efficient and cheaper power fo ships, trains, and factories.
2. Key textile innovations - Kay began mechanization of weaving with flying shuttle
Hargraves changed the position of the spinning wheel from vertical to horizontal
Arkwright developed a water frame that stretched the fibers into a tighter, harder yarn
3. Industrial revolution
4. Definitions of entrepreneurship - Cantillion's definition - "anyone who bought or made a product at a certain cost to sell at an uncertain price".
Say's definition - "a combination of moral qualities that are not often found together. Judgment, perseverance, and a
knowledge of the world as well as business, the entrepreneur is called upon to estimate with tolerable accuracy the
importance of the specific product, the probable amount of the demand, and the means of its production: at one time he
must employ a great number of hands; at another, buy or order the raw material, collect laborers, find consumers, and
give at all times a rigid attention to order and economy; in a word, he must possess the art of superintendence and
administration:.
5. The 4th factor of production - entrepreneurs
6. Problems with labor - 3 aspects - recruitment, training and motivation
7. Luddites - workers who smashed machines in protest of management, based on fear of unemployment from technological advancement
8. Problems with management talent - no common body of knowledge for managers, no transferability of managerial skills, nepotism, no common code of behavior for managers
9. Early profit sharing - Mill's idea that connecting the interest of the employee with the employer by giving them a percentage of the profits would improve a manager's "zeal".
10. Early functions of management - usually illiterate workers promoted from within based on technical skills and/or the ability to keep order
11. Worker conditions - exploited to some extent, but standards of living were increased, falling death rates and rising birth rates.
12. Marx and Engels - felt workers were exploited by factory masters, advocated use of force
13. Utopians - Robert Owen - communal life
14. Child and female labor - found primarily in textile industry, but also used prior to industrial revolution in the domestic/agricultural system
15. Causes for the industrial revolution - first development of textile innovations, followed by the steam engine, then railroads, telecommunications.
Chapter 4:
1. Robert Owen -
2. Charles Babbage
3. Andrew Ure
4. Charles Dupin
5. See summary
Chapter 5:
1. Antebellum industry - prior to the War of Northern Aggression/Civil War
2. How did industrial revolution arrive in US? Samuel Slater - said he was a farmer on immigration papers and "brought technical knowledge" with him
3. What steps were taken to block by England? prohibiting sale of manufacturing equipment, restricting immigration of skilled laborers
4. Moses Brown - owned small textile mill in Rhode Island, induced Samuel Slater to come to US, became first technicologically advanced textile mill - Rhode Island System - relied on sole proprietorship or partnership form of ownership; spun fine yarn in the mill and put out weaving to be done by families in their homes
5. Samuel Slater
6. Waltham system - Francis Cabot Lowell - Boston Manufacturing Company of Waltham - used joint-stock companies and the corporate form of ownershipl integrated spinning and weaving to manufacture goods in large quantities; hired non family supervisors and managers for their mills,and relied on adult female labor.
7. American System of Manufactures - parts were built to such exacting standards that they were interchangable. Interchangeable parts began with weapony earlier but the US moved it from weaponry to industry.
8. Great Exhibition of Industry of all Nations - the showcase the allowed the world to see interchangeable parts in unpickable locks, sewing machines, repeating Colt revolvers, mechanical reaper
9. Springfield Armory - central workshop to bring weapons makers together, Colonel Lee reorganized; central authority, areas of responsibilities. piece-rate accounting system, specialization of labor increased, tightened discipline, control of time and material costs, what later became known as the American System of Manufactures
10. First big business: Railroads
11. Communication revolution – the telegraph
12. Mono versus chroncentric time - chroncentric - the idea that we are better off than our ancestors
13. Daniel McCallum – railroads, principals of mgt.developed organizational chart
14. Henri Poor – broader mgt. view
Chapter 6:
1. Alfred Chandler -
2. Horizontal and Vertical Growth (Chandler)
3. Dale Carnegie
4. Bessemer process
5. US versus British steel production
6. ASME
7. The Labor Question
8. Adam Smith – breaking with mercantilist position
9. David Schloss – lump of labor
10. Profit sharing
11. Frederick Halsey
12. Gain sharing
13. Robber barons or benefactors
14. Social Darwinism
15. Steinway – Quid Pro Quo
16. Endowment versus “menace to society”
17. Effectiveness of early business regulation
Chapter 7:
1. Frederick Taylor - An engineer during the latter half of the nineteenth century was was vital in revolutionizing management.
2. Scientific management - The use of scientific fact-finding methods to determine empirically instead of traditionally the right ways to perform tasks.
3. Time study - The use of analysis and synthesis to determine and create standards for a work day and performance.
4. 3 premises (pg
5. First class man - Any worker who is not not, mentally suited, physically capable or is unwilling to give their best effort in/on a job.
6. Functional foreman - Someone who was in charge of a specific operation or had a specific responsibility, outside of management.
7. Taylor on cost accounting - Found it as an effective system to increase overall efficiency of the company, which he implemented at Steel Motor Works in 1896
8. Taylor on cooperation - believed a business is a system of cooperation that will be successful only if all concerned work toward a common goal.
9. Pig iron controversy - That Taylor's report of the facts about his experiments at Bethlehem Iron Company had been embellished and were stretched to add extra value to his experiments.
10. Signs of over control (see 136) -
11. Taylor on business education
12. Easter Rate Case
13. Watertown and the congressional investigation
14. Unions versus scientific management
15. Taylor’s mark – see summary - "His emphasis on efficiency remains a prevailing value of contemporary management."
Chapter 8:
1. Carl Barth - Installed the scientific method in multiple organizations along with the creation of the slider ruler.
2. Henry Gantt - Created the Gnatt chart which allowed managers and companies to track progress in relation to time instead of quantity.
3. The Gilbreths - First female manager and creators of process charts which helped reduce steps and imporve speed of productivity. (also invented several things and often used video cameras)
4. Morris Cooke - extended the gospel of efficiency to educational and municipal organizations
Chapter 9:
1. Personnel as “welfare”
2. Social gospel vs. Social Darwinism
3. Scientific mgt. – functional foreman and advent of staff positions
4. Briscoe versus Gantt at Bancroft Mills
5. Henry Ford
6. British examples
7. Plutology
8. Wundt
9. Munsterberg
10. Whiting Williams
11. Earnings as means of social comparison
12. William’s findings
13. Cooley’s Looking Glass self
14. Emile Durkheim – collective consciousness/organic
15. Pareto – social system
16. Goehre – whole versus partial work
Chapter 10:
1. Henri Fayol - background
2. Principals of management
3. Elements of management
4. Max Weber
5. Bureaucracy
6. Kinds of authority
7. Elements of bureaucracy
Chapter 11:
1. First schools involved
2. Early industrial management
3. Alford – mgt. as art and science
4. The French experience
5. The British experience
6. European union resistance
7. Russian experience
8. Hoxie Report
9. Thomson and Nelson studies
10. Data on “deskilling” of workers
11. “Crossover chart”
12. Flexible budget
13. Church’s view re Taylor
14. Sheldon’s thesis – service to community
15. Case method
16. Policy formulation
17. Dupont method
18. General Motors - Sloan
Chapter 12:
1. Taylor as the deus ex machine
2. Farm to factory statistics
3. Rationalization of resource utilization
4. Impact of new technologies
5. Horatio Alger
6. Early scientific mgt. and social values
7. The collision effect
8. See Figure 12-1
9. Social gospel
10. Populists
11. Progressives
Chapter 13:
1.The Illumination study
2.The Relay Test room study
3.The Interviewing program
4.Bank Wiring Observation Room
5.Speed King and The Slave
6.The “informal organization” and “output restrictions”
7.Findings of study re informal groups
8.Organizations as social systems
9.Mayo/Rothlisberger/Pareto
10.Management and the Worker
11.Hawthorne Effect
12.Were the Hawthorne results biased?
13.Effective collaboration and social solidarity
14.Emile Durkheim’s Anomie and Mayo
15.Mayo’s Human Relations Leader
16.Mayo – Human Relations and Motivation
17.Summary
Final Preparation Study Guide, Complete - (Note: page numbers may differ from previous edition) Chapter 14, The Search for Organizational Integration:
Mary Parker Follett:
Sense of her background 301-302
Group principal 303
Interrelating and a-making 303
Impact of Gestalt 304
Conflict resolution 304-306
Integrative unity/commonality of will 306
Functional whole 307
“Power with instead of power over” 308
Control situations not people 310
The “invisible leader” 311
Were her ideas too forward thinking? 312-313
Chester Barnard:
Erudite executive 313
Internal equilibrium and external adjustment 314
Effective-efficiency dichotomy 315
Universal system elements 316
Economy of incentives 316
Functions of the informal organization 317
On authority 317-318
3 executive functions 319
Chapter 15, People and Organizations:
Gestaltist notion of people at work 323
Moreno
Sociometry 324
Psychodrama, sociodrama 325
Kurt Lewin
Field Theory 326
“Laissez-faire” controversy 326
Changes through group participation 326
First sensitivity training 327
Carl Rogers
Nondirective counseling techniques 328
Normal Maier group decision-making 328
Maslow
Heirarchy of Needs 329
Eupsychian 330
Goldstein – difference re self actualization 329
Human Relations:
Scanlon plan 331
Lincoln electric 331-332
Job Enlargement and job rotation 332-333
Job participation
Power equalization thesis 333
McCormick (and Given) plan 334
Bottom up management 334
Kurt Lewin – The Authoritarian Personality 335
Likert – 2 different leadership orientations 335
Michigan and Ohio State studies 335
Whyte – participatory action research 337
Wight Baake – bonds of an organization 337
Herbert Simon
Bounded rationality 338
Satisficing 339
Also add: Escalation of commitment (in class notes)
James Moony (affable Irishman) 353 - General Motors executive who observed that enterprises sought "profit through service" and that the goals of industry was "the alleviation of human want and misery" Studied governments, armies and Catholic church Body-mind analogy 355 - "Management is the vital spark which actuates, directs, and controls the plans and procedure of organization. With management enters the personal factor, without which no body could be a living being with any directive toward a given purpose. The relation of management to organization is analogous to the relation of the psychic complex to the physical body. Our bodies are simply the means and the instrument through which the psychic force moves toward the attainment of its aims and desires. Principals of organization 355 - Mooney developed three principles of organizations: the coordinative principle, the scalar principle and the functional principle Compulsory staff service 356 - A principle the Catholic Church worked on. Where a superior had to consult elder monks even on minor matters. Henry Dennison - Implimented the Taylor system in paper-product firm. He believed in team work and also recognized diversity in motivation. His view of motivation 357 - He viewed that there were four general tendenices. "regard for his own and his family's welfare and standing, liking for thw work itself, regard for one or more members of the organization and for their good opinion and pleaseure in working with them, and respect and regard for the main purpose of the organization. Progressive employer358 - Dennison was a progressive employer because he focused on employee satisfaction. He used an employee profit sharing plan, low-interest loans for employeess to purchase homes, unemployment and several other things. Gulick POSDCORB 361-362 - Guilk divided the work of CEOs into seven functional elements, POSDCORB. Planning, Organizating, Staffing, Directing, Coordinating, Reporting, and Budgeting. Urwick’s 8 principals 362 - 1"principle of objective" 2 "principle of correspondence" 3 "principle of responsibility" 4 "principle of authority" 5 "principle of the span of control" 6 "principle of specialization" 7 "principle of coordination" 8 "principle of continuity" Graicunas span of control 352-353 - Gracicuna wrote a paper stating that a managers span of control was from 3 to 7 subordinates. Any more could lead to confusion by the manager trying to direct too many things. Top mgt. view: - This was a focus on the overall higher management role of an organization. This was brought about over the seperation of ownership and control and the economics of business firms. Davis - Stated that the fundamental functions and principles of factory management were universal in their appliation. He also wrote "The fundamentals of Top Management" Executive leadership 355 - Daivs said that they should have a sound philosophy of management with respect to the public interest. That their primary mission "is to supply the public with whatever goods or services it desires at the proper time and place, in the required amounts having the desired qualities, and at a price that it is willing to pay" The right to decide 355 - This is that in order to achieve business objectives authority had to have the right to plan, organize, and control the organization's activitives, so they had to have the right to decide. Timing of control 356 - Is what deiced what kind of control you would take. It was broken down into three plases. Preliminary, concurrent and corrective. Harr Hopf optimology 357 - It was hic concept "that state of development of a business enterprise which tends to prepetuate an equilibrium between the factors of size, cost, and human capacity and this to promote in the highest degree regular realization of the business objectives." Overall: pervasiveness of control systems 358 - Overall control practices brought little solace; only half of the companies studies used budgets as a means of planning and, subsequently, for measuring "over-all results of efforts." Ownership and control issues 359 - It was found that most top managers of large corporations were losing sight of whose interests they served. It was found that they were becoming "economic autocrats" Commons – types of transactions 360-361 - Commons said that transactions were the smallest unit of analysis and that they were the the transfer of future ownership. He identified three types of transfers" bargaining, managerial and rationing. Coase – cost to market mechanism 361 - Coast stated that the use of Firms were a way to reduce market costs and that they could be reduced further if a firm could coordinate its market transactions.
Chapter 17, Human Relations in Concept and Practice:
Whiting Williamson human relations 364 he extended the meaning of personnel/employee relations to include human relations and suggested that attention to people should be an organization-wide function rather than the province of personnel managers alone. By improving human relations at every level of an organization , all parties, workers, managers, and the public, would benefit.
After Hawthorne, human relations took on interpersonal relations flavor 364 Human relations gained academice credibility and moved on to studies of different business organizations.
Wagner Act 366 provided the legislative basis for a spurt in union membership
Were Mayoists anti union? 366 No the mayoists were not anti union they suggested that in both union and nonunion employment there was an equal need for human relations-oriented supervisors.
Causes of union strife 1920 -1950 366-367 wages and hours or union organizing efforts
Hawthorne revisited- Four separate areas of criticism (1) hawthorne researchers' view of society as characterized by anomie, social disorganization, and conflict; (2) their acceptance of management's views of the worker and management 's " willingness to manipulate workers for management's ends"; (3) their failure to recognize other alternatives for accomodating industrial conflict, such as collective bargaining; and (4) their specific failure to take unions into account as a method of building social solidarity.
Areas of strive 367
Bell “cow sociology” 368 to think that contented workers were productive workers was to equate human behavior with "cow sociology" that is, the notion that contented cows give more milk.
Fox – HR as end rather than a means 369 the regard for human relations as an end rather then a means misled managers to think that a conflict -free state and worker contentment would automatically lead to a company's success, when in fact the company might fail.
Knowles evangelism and mysticism 369-370 called for a better mix of managerial skills but one that would avoid the evangelism and mysticism.
Summary of Durkheim and Mayo positions 370 technology and specialization of labor destroyed social efforts and group cohesiveness. They wanted to downplay material acquistiveness, rebuild primary groups, and teach people to love other people once more
On research methods employed
Sykes money 370 sykes contended that human-relations advocates believed that money did not motivate, when in fact the Hawthorne evidence led to just the opposite conclusion
Carey cooperative workers, workers removed 371 Carey maintained that the Hawthorne studies were consistent with the view of economice incentives and the use of a firm disciplinary hand to achieve higher output
Franke and Kaul passage of time, etc. 371-372 concluded that it was not supervisory style or financial incentives, but the use of discipline, the economic milieu, and relief from fatigue that led to increased productivity.
Excellent chapter summary 373
Chapter 18, The Social Person Era in Retrospect:
Intro. To the Great Crash 375-376
Rags to Riches became the midnight pumpkin 376
Work sharing plan 376
Some firsts for the 29 depression 377
FDR and fear 377
Heilbroner and what really pulled us out of the depression 377
Grass roots and Bottom up 378
Organization is the answer 378-379
Schumpeter’s pessimism – was it warranted? 379-381
Shifting social values and a new pessimism 382-383
Eric Fromm and Fascism 383
McClelland and affililation versus achievement 383
Resiman – shift from invisible hand to glad hand 383
Confusion of souls – Carnegie and Peale 384-385
The social ethic – what were the novels like of the time? 386
Mayo and farming… huh? 387
Roosevelt background 387-388
New Deal basics 388
More on Wagner Act 390
Review summary for Part III 391
Chapter 19: Management Theory and Practice
Koontz, Management process school 401
Human Behavior school 402
Social system school 402
Decision theory school 402
The Semantics jungle 402
George Odiorne “theory thicket” 403
Mintsberg’s roles 404
Stewart’s demands, constrains and choices 404
Peters and Waterman, In Search of Excellence 407
Peter Drucker, Management by Objectives (MBO) 411
Michael Porter, 5 Forces, 419
SWOT 420
Prahalad and Hamel, SBU 421
KBV 421
Stretego 423
Chapter 20: Organizational Behavior and Theory
Theory X & Y, McGregor, 430-432
Herzberg, 436-438
Expectancy Theory, Vroom, Yetton, Porter, Lawler 439
Equity Theory, Stacey Adams 440
Goal Setting Theory, Edwin Locke 440-441
Leadership styles, Kurt Lewin and Likert, 442-443
Situation theories of leadership, 444
Charisma, 444
James McGregor Burns, transactional/transformational, 445
Chapter 21: Science and Systems in Management
Impact of WWII 456-457
Operations Research and Management Science 457-458
Henry Gantt CPM and PERT 459-460
After WWII 461
Shewart, Deming, Statistics, TQM 461-463
7 Deadly sins 462-463
Blame 463
Kaizen 463
Pareto Principle 463
Schonberger Chain of customers 465
General Systems Theory 466
Computer Age 468-470
Chapter 22: Obligations and Opportunities
Ethics 474
Johnson and Johnson’s credo 475
Decline in ethical values bottom of 475
Summary of business unethical practices 476
5% clause 478
Donna Woods study on meat packing plants 478
Howard Bowens view of social responsibility 479
Arguments for social responsibility 479
Ansoff/Drucker on economic imperative of firm 480
Tire and rubber industry example of multinational enterprise’s evolution 483
Cultural homogeneity 485
Cultural relativism 487
Ethical imperialism 487
Chapter 23: Epilogue
Review Figure 23-1 490
Most important reason to study Management History and Theory 491
Please organize yourselves and collaborate to create a midterm study guide for the following key terms:
Chapter 1:
1. Why study mgt. history? study the past to illuminate the present “History may not repeat itself, but it rhymes”.-Mark Twain
2. Cultural framework 3 facets, social political, technological
3. Social facet relationship of people to other people
4. Political facet relationship of the individual to the state
5. Technological facet related to the art and applied science of making tools and equipment
6. Brownoski quote “We are joined in families, the families are joined in kinship groups, the kinship groups in clans, the clans in tribes, and the tribes in nations. This is the most primitive revelation of a hierarchy of organization, layer upon layer that links the present to the past of man’s existence.”
7. George Washington quote “Knowledge is in every country the surest basis of public happiness”
8. Cultural environment Figure 1-11the state of nature: general scarcity of resources and hostility in nature gives rise to economic, social, and political needs of people. To satisfy need, people form economic, social, and political organizations. State of the art technology influences how organizations engage in Management. The management of organizations facilitates satisfaction of people’s needs.
9. Social values cultural standards of conduct
10. Guilds trade unions
Chapter 2:
1. Hammurabi Code of 282 laws
2. General Sun Tzu - marshaling the army into subdivisions, establishing gradations of rank amoung officers, using gongs, flags, and signal fires for communication, and planning.
“This is the art of offensive strategy: when our forces are ten to the enemy’s one, to surround him; when five to one, to attack him; if double his strength, to divide him, if equally matched, engage him, if weaker numerically, be capable of withdrawing, if quite unequal in every way, be capable of eluding him”.
3. Confucius advocated that offices should go to individuals of proven merit and ability – led to performance appraisals
4. Chanakya Kautilya – humans “are naturally fickle-minded, and like horses at work, exhibit constant change in their temper. “It is impossible for a government servant not to eat up, at least, a bit of the King’s revenue.” Desired traits of administrators “of high ancestry…blessed with wisdom…eloquent..intelligent, enthusiastic…sociable”. Job descriptions.
5. Egyptian examples - developed extensive irrigation projects, the pyramids
6. Hebrew examples Joseph - viziers (supervisors)
7. Greek examples – Aristotle + Plato - Aristotle - father of scientific method - division of labor, specialization
8. Will Durant quote – (stoics vs. epicureans) "a nation is born stoic, and dies epicurean".
9. Roman examples – Rule of 10 - established units to perform certain tasks as well as a hierarchy of authority to ensure performance
10. Plato and Aristotle
11. Feudalism - ties people to the land, fixed rigid class distinctions, established an age of landed aristocracy that was to endure to the Industrial Revolution, forced education to a standstill, made poverty and ignorance the hallmark of the masses, and completely stifled human progress until the Age of Reformation.
12. Guilds - One of two from of industrial organization before the revolution, it consisted of either merchants guilds (buy and sell goods) or crafts guilds (create goods)
13. Domestic system - The other industrial organization besides guilds, it used contracts with people who worked in their own homes, making completion unpredictable.
14. Protestant ethic - To always work hard and through that you will be rewarded in the afterlife.
15. The Weberian thesis - That Protestantism created capitalism.
16. Calvinism - The belief that salvation required one to live a life of good work.
17. Liberty ethic - The political system conducive to individual's need for achievement and their rewards for worldly efforts.
18. Market ethic - The idea of removing governments control over how the business should operate and allowed them to engage in competition.
19. Adam Smith - The Wealth of Nations - influential in with letting people own business and allowing the economy to take care of itself, without regulated price.
20. Machiavelli - Wrote a book about how to rule successfully as a a ruler or aspiring ruler.
21. John Locke - Wrote about the idea of how one person should be leader, but a legislative.
22. Thomas Hobbes - Believed in a strong central leadership, that individuals needed to be ruled.
Chapter 3:
1. Steam engine - one of those big noisy thingys...oh wait, I bet you would rather know that the development of the steam engine was the heart of the industrial revolution, providing more efficient and cheaper power fo ships, trains, and factories.
2. Key textile innovations - Kay began mechanization of weaving with flying shuttle
Hargraves changed the position of the spinning wheel from vertical to horizontal
Arkwright developed a water frame that stretched the fibers into a tighter, harder yarn
3. Industrial revolution
4. Definitions of entrepreneurship - Cantillion's definition - "anyone who bought or made a product at a certain cost to sell at an uncertain price".
Say's definition - "a combination of moral qualities that are not often found together. Judgment, perseverance, and a
knowledge of the world as well as business, the entrepreneur is called upon to estimate with tolerable accuracy the
importance of the specific product, the probable amount of the demand, and the means of its production: at one time he
must employ a great number of hands; at another, buy or order the raw material, collect laborers, find consumers, and
give at all times a rigid attention to order and economy; in a word, he must possess the art of superintendence and
administration:.
5. The 4th factor of production - entrepreneurs
6. Problems with labor - 3 aspects - recruitment, training and motivation
7. Luddites - workers who smashed machines in protest of management, based on fear of unemployment from technological advancement
8. Problems with management talent - no common body of knowledge for managers, no transferability of managerial skills, nepotism, no common code of behavior for managers
9. Early profit sharing - Mill's idea that connecting the interest of the employee with the employer by giving them a percentage of the profits would improve a manager's "zeal".
10. Early functions of management - usually illiterate workers promoted from within based on technical skills and/or the ability to keep order
11. Worker conditions - exploited to some extent, but standards of living were increased, falling death rates and rising birth rates.
12. Marx and Engels - felt workers were exploited by factory masters, advocated use of force
13. Utopians - Robert Owen - communal life
14. Child and female labor - found primarily in textile industry, but also used prior to industrial revolution in the domestic/agricultural system
15. Causes for the industrial revolution - first development of textile innovations, followed by the steam engine, then railroads, telecommunications.
Chapter 4:
1. Robert Owen -
2. Charles Babbage
3. Andrew Ure
4. Charles Dupin
5. See summary
Chapter 5:
1. Antebellum industry - prior to the War of Northern Aggression/Civil War
2. How did industrial revolution arrive in US? Samuel Slater - said he was a farmer on immigration papers and "brought technical knowledge" with him
3. What steps were taken to block by England? prohibiting sale of manufacturing equipment, restricting immigration of skilled laborers
4. Moses Brown - owned small textile mill in Rhode Island, induced Samuel Slater to come to US, became first technicologically advanced textile mill - Rhode Island System - relied on sole proprietorship or partnership form of ownership; spun fine yarn in the mill and put out weaving to be done by families in their homes
5. Samuel Slater
6. Waltham system - Francis Cabot Lowell - Boston Manufacturing Company of Waltham - used joint-stock companies and the corporate form of ownershipl integrated spinning and weaving to manufacture goods in large quantities; hired non family supervisors and managers for their mills,and relied on adult female labor.
7. American System of Manufactures - parts were built to such exacting standards that they were interchangable. Interchangeable parts began with weapony earlier but the US moved it from weaponry to industry.
8. Great Exhibition of Industry of all Nations - the showcase the allowed the world to see interchangeable parts in unpickable locks, sewing machines, repeating Colt revolvers, mechanical reaper
9. Springfield Armory - central workshop to bring weapons makers together, Colonel Lee reorganized; central authority, areas of responsibilities. piece-rate accounting system, specialization of labor increased, tightened discipline, control of time and material costs, what later became known as the American System of Manufactures
10. First big business: Railroads
11. Communication revolution – the telegraph
12. Mono versus chroncentric time - chroncentric - the idea that we are better off than our ancestors
13. Daniel McCallum – railroads, principals of mgt.developed organizational chart
14. Henri Poor – broader mgt. view
Chapter 6:
1. Alfred Chandler -
2. Horizontal and Vertical Growth (Chandler)
3. Dale Carnegie
4. Bessemer process
5. US versus British steel production
6. ASME
7. The Labor Question
8. Adam Smith – breaking with mercantilist position
9. David Schloss – lump of labor
10. Profit sharing
11. Frederick Halsey
12. Gain sharing
13. Robber barons or benefactors
14. Social Darwinism
15. Steinway – Quid Pro Quo
16. Endowment versus “menace to society”
17. Effectiveness of early business regulation
Chapter 7:
1. Frederick Taylor - An engineer during the latter half of the nineteenth century was was vital in revolutionizing management.
2. Scientific management - The use of scientific fact-finding methods to determine empirically instead of traditionally the right ways to perform tasks.
3. Time study - The use of analysis and synthesis to determine and create standards for a work day and performance.
4. 3 premises (pg
5. First class man - Any worker who is not not, mentally suited, physically capable or is unwilling to give their best effort in/on a job.
6. Functional foreman - Someone who was in charge of a specific operation or had a specific responsibility, outside of management.
7. Taylor on cost accounting - Found it as an effective system to increase overall efficiency of the company, which he implemented at Steel Motor Works in 1896
8. Taylor on cooperation - believed a business is a system of cooperation that will be successful only if all concerned work toward a common goal.
9. Pig iron controversy - That Taylor's report of the facts about his experiments at Bethlehem Iron Company had been embellished and were stretched to add extra value to his experiments.
10. Signs of over control (see 136) -
11. Taylor on business education
12. Easter Rate Case
13. Watertown and the congressional investigation
14. Unions versus scientific management
15. Taylor’s mark – see summary - "His emphasis on efficiency remains a prevailing value of contemporary management."
Chapter 8:
1. Carl Barth - Installed the scientific method in multiple organizations along with the creation of the slider ruler.
2. Henry Gantt - Created the Gnatt chart which allowed managers and companies to track progress in relation to time instead of quantity.
3. The Gilbreths - First female manager and creators of process charts which helped reduce steps and imporve speed of productivity. (also invented several things and often used video cameras)
4. Morris Cooke - extended the gospel of efficiency to educational and municipal organizations
Chapter 9:
1. Personnel as “welfare”
2. Social gospel vs. Social Darwinism
3. Scientific mgt. – functional foreman and advent of staff positions
4. Briscoe versus Gantt at Bancroft Mills
5. Henry Ford
6. British examples
7. Plutology
8. Wundt
9. Munsterberg
10. Whiting Williams
11. Earnings as means of social comparison
12. William’s findings
13. Cooley’s Looking Glass self
14. Emile Durkheim – collective consciousness/organic
15. Pareto – social system
16. Goehre – whole versus partial work
Chapter 10:
1. Henri Fayol - background
2. Principals of management
3. Elements of management
4. Max Weber
5. Bureaucracy
6. Kinds of authority
7. Elements of bureaucracy
Chapter 11:
1. First schools involved
2. Early industrial management
3. Alford – mgt. as art and science
4. The French experience
5. The British experience
6. European union resistance
7. Russian experience
8. Hoxie Report
9. Thomson and Nelson studies
10. Data on “deskilling” of workers
11. “Crossover chart”
12. Flexible budget
13. Church’s view re Taylor
14. Sheldon’s thesis – service to community
15. Case method
16. Policy formulation
17. Dupont method
18. General Motors - Sloan
Chapter 12:
1. Taylor as the deus ex machine
2. Farm to factory statistics
3. Rationalization of resource utilization
4. Impact of new technologies
5. Horatio Alger
6. Early scientific mgt. and social values
7. The collision effect
8. See Figure 12-1
9. Social gospel
10. Populists
11. Progressives
Chapter 13:
1. The Illumination study
2. The Relay Test room study
3. The Interviewing program
4. Bank Wiring Observation Room
5. Speed King and The Slave
6. The “informal organization” and “output restrictions”
7. Findings of study re informal groups
8. Organizations as social systems
9. Mayo/Rothlisberger/Pareto
10. Management and the Worker
11. Hawthorne Effect
12. Were the Hawthorne results biased?
13. Effective collaboration and social solidarity
14. Emile Durkheim’s Anomie and Mayo
15. Mayo’s Human Relations Leader
16. Mayo – Human Relations and Motivation
17. Summary
Final Preparation Study Guide, Complete - (Note: page numbers may differ from previous edition)
Chapter 14, The Search for Organizational Integration:
Mary Parker Follett:
Sense of her background 301-302
Group principal 303
Interrelating and a-making 303
Impact of Gestalt 304
Conflict resolution 304-306
Integrative unity/commonality of will 306
Functional whole 307
“Power with instead of power over” 308
Control situations not people 310
The “invisible leader” 311
Were her ideas too forward thinking? 312-313
Chester Barnard:
Erudite executive 313
Internal equilibrium and external adjustment 314
Effective-efficiency dichotomy 315
Universal system elements 316
Economy of incentives 316
Functions of the informal organization 317
On authority 317-318
3 executive functions 319
Chapter 15, People and Organizations:
Gestaltist notion of people at work 323
Moreno
Sociometry 324
Psychodrama, sociodrama 325
Kurt Lewin
Field Theory 326
“Laissez-faire” controversy 326
Changes through group participation 326
First sensitivity training 327
Carl Rogers
Nondirective counseling techniques 328
Normal Maier group decision-making 328
Maslow
Heirarchy of Needs 329
Eupsychian 330
Goldstein – difference re self actualization 329
Human Relations:
Scanlon plan 331
Lincoln electric 331-332
Job Enlargement and job rotation 332-333
Job participation
Power equalization thesis 333
McCormick (and Given) plan 334
Bottom up management 334
Kurt Lewin – The Authoritarian Personality 335
Likert – 2 different leadership orientations 335
Michigan and Ohio State studies 335
Whyte – participatory action research 337
Wight Baake – bonds of an organization 337
Herbert Simon
Bounded rationality 338
Satisficing 339
Also add: Escalation of commitment (in class notes)
James Moony (affable Irishman) 353 - General Motors executive who observed that enterprises sought "profit through service" and that the goals of industry was "the alleviation of human want and misery"
Studied governments, armies and Catholic church
Body-mind analogy 355 - "Management is the vital spark which actuates, directs, and controls the plans and procedure of organization. With management enters the personal factor, without which no body could be a living being with any directive toward a given purpose. The relation of management to organization is analogous to the relation of the psychic complex to the physical body. Our bodies are simply the means and the instrument through which the psychic force moves toward the attainment of its aims and desires.
Principals of organization 355 - Mooney developed three principles of organizations: the coordinative principle, the scalar principle and the functional principle
Compulsory staff service 356 - A principle the Catholic Church worked on. Where a superior had to consult elder monks even on minor matters.
Henry Dennison - Implimented the Taylor system in paper-product firm. He believed in team work and also recognized diversity in motivation.
His view of motivation 357 - He viewed that there were four general tendenices. "regard for his own and his family's welfare and standing, liking for thw work itself, regard for one or more members of the organization and for their good opinion and pleaseure in working with them, and respect and regard for the main purpose of the organization.
Progressive employer 358 - Dennison was a progressive employer because he focused on employee satisfaction. He used an employee profit sharing plan, low-interest loans for employeess to purchase homes, unemployment and several other things.
Gulick POSDCORB 361-362 - Guilk divided the work of CEOs into seven functional elements, POSDCORB. Planning, Organizating, Staffing, Directing, Coordinating, Reporting, and Budgeting.
Urwick’s 8 principals 362 - 1"principle of objective" 2 "principle of correspondence" 3 "principle of responsibility" 4 "principle of authority" 5 "principle of the span of control" 6 "principle of specialization" 7 "principle of coordination" 8 "principle of continuity"
Graicunas span of control 352-353 - Gracicuna wrote a paper stating that a managers span of control was from 3 to 7 subordinates. Any more could lead to confusion by the manager trying to direct too many things.
Top mgt. view: - This was a focus on the overall higher management role of an organization. This was brought about over the seperation of ownership and control and the economics of business firms.
Davis - Stated that the fundamental functions and principles of factory management were universal in their appliation. He also wrote "The fundamentals of Top Management"
Executive leadership 355 - Daivs said that they should have a sound philosophy of management with respect to the public interest. That their primary mission "is to supply the public with whatever goods or services it desires at the proper time and place, in the required amounts having the desired qualities, and at a price that it is willing to pay"
The right to decide 355 - This is that in order to achieve business objectives authority had to have the right to plan, organize, and control the organization's activitives, so they had to have the right to decide.
Timing of control 356 - Is what deiced what kind of control you would take. It was broken down into three plases. Preliminary, concurrent and corrective.
Harr Hopf optimology 357 - It was hic concept "that state of development of a business enterprise which tends to prepetuate an equilibrium between the factors of size, cost, and human capacity and this to promote in the highest degree regular realization of the business objectives."
Overall: pervasiveness of control systems 358 - Overall control practices brought little solace; only half of the companies studies used budgets as a means of planning and, subsequently, for measuring "over-all results of efforts."
Ownership and control issues 359 - It was found that most top managers of large corporations were losing sight of whose interests they served. It was found that they were becoming "economic autocrats"
Commons – types of transactions 360-361 - Commons said that transactions were the smallest unit of analysis and that they were the the transfer of future ownership. He identified three types of transfers" bargaining, managerial and rationing.
Coase – cost to market mechanism 361 - Coast stated that the use of Firms were a way to reduce market costs and that they could be reduced further if a firm could coordinate its market transactions.
Chapter 17, Human Relations in Concept and Practice:
Whiting Williamson human relations 364 he extended the meaning of personnel/employee relations to include human relations and suggested that attention to people should be an organization-wide function rather than the province of personnel managers alone. By improving human relations at every level of an organization , all parties, workers, managers, and the public, would benefit.
After Hawthorne, human relations took on interpersonal relations flavor 364 Human relations gained academice credibility and moved on to studies of different business organizations.
Wagner Act 366 provided the legislative basis for a spurt in union membership
Were Mayoists anti union? 366 No the mayoists were not anti union they suggested that in both union and nonunion employment there was an equal need for human relations-oriented supervisors.
Causes of union strife 1920 -1950 366-367 wages and hours or union organizing efforts
Hawthorne revisited- Four separate areas of criticism (1) hawthorne researchers' view of society as characterized by anomie, social disorganization, and conflict; (2) their acceptance of management's views of the worker and management 's " willingness to manipulate workers for management's ends"; (3) their failure to recognize other alternatives for accomodating industrial conflict, such as collective bargaining; and (4) their specific failure to take unions into account as a method of building social solidarity.
Areas of strive 367
Bell “cow sociology” 368 to think that contented workers were productive workers was to equate human behavior with "cow sociology" that is, the notion that contented cows give more milk.
Fox – HR as end rather than a means 369 the regard for human relations as an end rather then a means misled managers to think that a conflict -free state and worker contentment would automatically lead to a company's success, when in fact the company might fail.
Knowles evangelism and mysticism 369-370 called for a better mix of managerial skills but one that would avoid the evangelism and mysticism.
Summary of Durkheim and Mayo positions 370 technology and specialization of labor destroyed social efforts and group cohesiveness. They wanted to downplay material acquistiveness, rebuild primary groups, and teach people to love other people once more
On research methods employed
Sykes money 370 sykes contended that human-relations advocates believed that money did not motivate, when in fact the Hawthorne evidence led to just the opposite conclusion
Carey cooperative workers, workers removed 371 Carey maintained that the Hawthorne studies were consistent with the view of economice incentives and the use of a firm disciplinary hand to achieve higher output
Franke and Kaul passage of time, etc. 371-372 concluded that it was not supervisory style or financial incentives, but the use of discipline, the economic milieu, and relief from fatigue that led to increased productivity.
Excellent chapter summary 373
Chapter 18, The Social Person Era in Retrospect:
Intro. To the Great Crash 375-376
Rags to Riches became the midnight pumpkin 376
Work sharing plan 376
Some firsts for the 29 depression 377
FDR and fear 377
Heilbroner and what really pulled us out of the depression 377
Grass roots and Bottom up 378
Organization is the answer 378-379
Schumpeter’s pessimism – was it warranted? 379-381
Shifting social values and a new pessimism 382-383
Eric Fromm and Fascism 383
McClelland and affililation versus achievement 383
Resiman – shift from invisible hand to glad hand 383
Confusion of souls – Carnegie and Peale 384-385
The social ethic – what were the novels like of the time? 386
Mayo and farming… huh? 387
Roosevelt background 387-388
New Deal basics 388
More on Wagner Act 390
Review summary for Part III 391
Chapter 19: Management Theory and Practice
Koontz, Management process school 401
Human Behavior school 402
Social system school 402
Decision theory school 402
The Semantics jungle 402
George Odiorne “theory thicket” 403
Mintsberg’s roles 404
Stewart’s demands, constrains and choices 404
Peters and Waterman, In Search of Excellence 407
Peter Drucker, Management by Objectives (MBO) 411
Michael Porter, 5 Forces, 419
SWOT 420
Prahalad and Hamel, SBU 421
KBV 421
Stretego 423
Chapter 20: Organizational Behavior and Theory
Theory X & Y, McGregor, 430-432
Herzberg, 436-438
Expectancy Theory, Vroom, Yetton, Porter, Lawler 439
Equity Theory, Stacey Adams 440
Goal Setting Theory, Edwin Locke 440-441
Leadership styles, Kurt Lewin and Likert, 442-443
Situation theories of leadership, 444
Charisma, 444
James McGregor Burns, transactional/transformational, 445
Chapter 21: Science and Systems in Management
Impact of WWII 456-457
Operations Research and Management Science 457-458
Henry Gantt CPM and PERT 459-460
After WWII 461
Shewart, Deming, Statistics, TQM 461-463
7 Deadly sins 462-463
Blame 463
Kaizen 463
Pareto Principle 463
Schonberger Chain of customers 465
General Systems Theory 466
Computer Age 468-470
Chapter 22: Obligations and Opportunities
Ethics 474
Johnson and Johnson’s credo 475
Decline in ethical values bottom of 475
Summary of business unethical practices 476
5% clause 478
Donna Woods study on meat packing plants 478
Howard Bowens view of social responsibility 479
Arguments for social responsibility 479
Ansoff/Drucker on economic imperative of firm 480
Tire and rubber industry example of multinational enterprise’s evolution 483
Cultural homogeneity 485
Cultural relativism 487
Ethical imperialism 487
Chapter 23: Epilogue
Review Figure 23-1 490
Most important reason to study Management History and Theory 491